Japan, where consumers are known for their preference of buying whatever they need in small amounts every few days, has proved to be a very difficult market not only for Carrefour but also for rival Wal-Mart.

Despite its exit the French giant, which has more than 10,000 shops in 29 countries, said it had drawn up a proposed strategic partnership with Aeon in Japan.

Carrefour is leaving the Mexican market

"We ultimately reached the decision that we need a Japanese partner to stay in the market for a long time," said Carrefour Asia's CEO Philippe Jarry.

The draft agreement will allow Aeon to use the Carrefour name in Japan, for the two groups to co-operate on some commercial activities, and for the sale in Japan of Carrefour-branded products.

Other foreign retailers that have been forced to abandon the Japanese market were France's Sephora - part of the world's largest luxury group LVMH - and British drugstore giant Boots.

Meanwhile, the French company has also announced tightened financial ties with Italy's Finiper, in which it has a 20% stake.

Carrefour said it had reached an agreement with Marco Brunelli, the main shareholder in Finiper - under this deal, Carrefour has an option to buy 31% of Finiper.

Weak in France

During the past month, in a decision welcomed by investors, Carrefour has shaken up its management in the hope of breathing new life into its flagging superstores.

The company has reported operating profits fell last year 0.5%, to 3.234bn euros ($4.33bn; £2.25bn) from 3.251bn euros, caused mainly by a weak performance in France where sales were flat.

Net current profit, before exceptional items, rose by 2.6% to 1.662bn euros from 1.620bn euros, but net profit after exceptional items fell by 14.9% to 1.387bn euros from 1.629bn euros.

The difference was accounted for by an exceptional charge of 275m euros.

The company has announced a four point growth strategy to improve its price image, boost customer traffic in its French hypermarket business, improve profitability outside France, and accelerate growth between 2006 and 2008.

Mr Duran has told Reuters news agency that Carrefour plans to open 15 Hypermarkets in China and expand its operations in Brazil, Colombia, Indonesia, Thailand and Poland.